Kerry Group has announced an increase to its base milk price for supplies in the month of April.
The processor confirmed today (Monday, May 16) that it will pay a base price of 49.5c/L, including VAT, at constituents of 3.3% protein and 3.6% butterfat.
This reflects an increase in price of 3c/L.
At EU standard constituents of 3.4% protein and 4.2% butterfat, the Kerry Group price converts to 54.21c/L.
Based on Kerry Group’s average milk solids for April supplies, the processor is expecting the average payment to be 53.31c/L.
Kerry’s price announcement follows on from Lakeland Dairies and Glanbia, both of which announced their prices for April milk last week.
Last Tuesday (May 10), the board of Lakeland announced its price, deciding to up its offering by 3c/L to 50.1c/L including VAT in the Republic of Ireland, for milk at 3.6% fat and 3.3% protein.
Lakeland said it will pay out an average of 53.02c/L for April milk here.
For Northern Ireland, Lakeland announced an increase of 2.5p/L to 40p/L.
On average, Northern Irish Lakeland suppliers will receive 42.1p/L for April milk, the processor said.
In a statement, the board of Lakeland noted that dairy markets are balanced, with an “uptick” in milk supply. However, a demand challenge is now emerging as higher prices feed through to consumers.
On Thursday of last week (May 12), Glanbia announced its price, saying that it would pay its suppliers a total of 50.08c/L, including VAT, at standard constituents.
This price includes a base price of 46.58c/L; the Sustainability Action Payment of 0.5c/L; and a new 3c/L Agri-Input Support Payment on all milk supplied in April.
Glanbia Co-op chairperson John Murphy said: “We are at a crucial time of year for investment in farm inputs to ensure adequate fodder supplies for next winter and spring.
“The war in Ukraine is continuing to affect farm input costs and supply chains. Tight global milk supply has pushed European dairy product prices to record levels, with high input costs appearing to be curtailing any major global milk supply response,” he added.